Detroit goes bankrupt
- 22 Juli 2013
Detroit has become the largest US city ever to file for bankruptcy, with debts of at least $15bn. Once the heart of the US car industry, Detroit's population has fallen from two million in the 1950s to 713,000 today.
The birthplace of mass production, 'Motor City', has thrown in the towel.
Decades of decline led up to this moment. Spiralling crime and the departure of the car factories that gave Detroit its nickname saw the destruction of its tax base. Years of incompetent and corrupt management left the city insolvent.
The emergency manager appointed by the state governor spent months going through the city's books. His conclusion: the city's debts are too great to be sustained.
Now the courts will have to work out who gets paid what, and the city's fall is complete.
mass production: memproduksi barang dalam jumlah besar dengan memakai mesin pabrik
thrown in the towel: menyerah, menyatakan kekalahan
spiralling: bertambah dengan cepat dan berdampak negatif
tax base: jumlah pendapatan, aset, dan harta yang dapat dikenakan pajak
incompetent: tidak mampu
insolvent: tidak bisa membayar utang
going through: memeriksa dengan seksama
books: catatan keuangan